Carmaker Stellantis and German chipmaker Infineon said on Thursday they would cooperate to further develop power architecture for the carmaker’s next generation vehicles.

The two companies said in a joint statement they signed supply and capacity agreements that will serve as a base for their cooperation.

These include Infineon’s smart power switches, helping Stellantis become one of the first carmakers to implement intelligent power network management and silicon carbide (SiC) semiconductors, supporting the standardisation of power modules and the improvement of EV’s performance and efficiency.

Technology and software are increasingly key elements in vehicles as the industry moves towards electrification and interconnection, pushing carmakers to seek stable supplies of innovative tech components, including semiconductors.

“We are securing the supply of crucial semiconductor solutions required to continue our transition to an electrified future,” said Stellantis chief purchasing and supplier quality officer Maxime Picat.

“Our semiconductors drive the decarbonisation and digitalisation of mobility. They increase the efficiency of cars and enable software-defined architectures,” said Peter Schiefer, president of Infineon’s automotive division.

A post-pandemic supply crunch, in particular a global shortage of semiconductors, severely slowed down automotive output in recent years, costing the industry millions of vehicles in terms of lost output.